General Motors to idle Michigan site to relieve Volt inventory

Article by Anita Panait, on March 3, 2012

General Motors will temporarily halt operations for more than a month at its Detroit-Hamtramck assembly plant in Michigan to curb rising inventories of the Chevrolet Volt plug-in hybrid that is being produced at the site. GM will commence the five-week momentary shutdown of the plant on the week of March 19. Affected will be 1,300 people employed at the plant, who were informed of the decision on Thursday.

They will go back to work when the company resumes production on April 23, 2012, according to Chris Lee, GM spokesman. Lee said that the closure was sparked by the need to maintain the right inventory levels and the need continue to meet demand.

At the end of February, GM has a Volt inventory of 6,300 units, which are enough to last 154 days at current sales rates, following the latest sales of 1,023 vehicles in February 2012. The sales of Volt suffered a five-month low in January 2012 with just 603 units, no thanks to a federal probe into whether the Volt’s battery pack carry a fire risk.Regulators closed the investigation in January after deciding that the car was safe.

GM executives believe that the probe brought negative publicity on the Volt, thus severely affecting sales. Sales of Volts are closely monitored by GM’s rival carmakers as they also plan to introduce their own versions of electric vehicles this year and the next.  The Volt reports a battery range of around 35 miles, after which power to the car is now generated by a gas-powered generator to an onboard electric drive unit.

Despite the challenges that faced and is facing the Volt, CEO Dan Akerson regards it as a new source of the company’s pride, pointing to the plug-in hybrid as a symbol of the GM’s innovation and fresh thinking. He urged the company’s engineers and product planners to cut costs while extending the technology to other GM models.

The result is that Cadillac will feature the plug-in hybrid technology to its new coupe to be released in 2013. After missing a self-imposed Volt US sales target of 10,000 units in 2011, the company have withdrawn its other forecast of 60,000 plug-in hybrids in 2012. The Detroit-Hamtramck assembly plant is home to the Volt and Opel Ampera, soon to the redesigned Chevrolet Malibu once new engines become available.

If you liked the article, share on:

Comments

Recommended

The next generation Volvo XC60 will be soon on its way to dealerships and customers as the Swedish carmaker has already commenced production of the mid-sized sports utility vehicle at...
by - April 30, 2017
In September 27, 2016, Porsche initially filed for a patent that is the “Unique Active Rear Diffuser”. And earlier this week, on April 27, 2017, the United States Patent and...
by - April 29, 2017
The Insurance Institute for Highway Safety (IIHS) has given its Top Safety Pick+ award to the redesigned version of the 2017 Kia Cadenza. This was a result of excellent a...
by - April 29, 2017
It’s pretty neat if you possess something of an extraordinary breed like, say, the Pagani Huayra. There are after all just a total of 100 units ever been built by...
by - April 28, 2017
If you’ve ever visited an arcade, chances are you have already seen a Logitech G920 wheel. If that doesn’t ring a bell, it’s the steering wheel that you use when...
by - April 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries